At some point you may buy an income producing asset, a functioning ecom website, or even another small business.
How you do this can have significant tax consequences.
Here’s what to think about.
Let’s say you want to buy a functioning FBA business. The business has the following in a corporation:
-A couple of successful brands,
-Supplier contracts with favorable terms,
-Ungated for toys and health on Amazon
-A warehouse lease,
-An engage employee, and
-A website
You and the owner have agreed to a $150k purchase price, but what are you buying?
If you buy the EQUITY/stock of the corporation, you will get $150k of tax basis in the stock, meaning you will likely never recover the basis in the form of a deduction unless you sell the company.
If you set up your own entity and buy the ASSETS (all of the operations listed above), you WILL recover that $150k in the course of the business at a minimum of a $10k deduction per year for 15 years, but possibly faster.
$150k of deductions vs potentially none and you have effectively purchased the SAME business.
Deal terms matter.
Let me know.
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FACT: You LOSE at least 1/3 of your income to TAX! ...and if you are making a lot of money, it's over 1/2!!!
Think what you could do with that money, even just some of it?
If you could just take 10% back, what would that mean to your life?
If invested properly, could you retire 10 years earlier and enjoy more of the good life? What would you do if you could stop working 10 years earlier?
What would your vacations look like if you had 10% more of your income? That's like going from a hotel inland to staying in the biggest house on the beach!
IF YOU HAVE EVER READ AND LIKED ANYTHING OF MINE - READ THIS!!!
Want to live longer?
Enjoy better food and drink?
Do you want less pain and more security?
How about better sex?
Upgrade where you live?
Take better care of your loved ones?
Be admired by those you admire?
In short, do you want to win bigger and more often?
Would you believe that there is one single factor that can actually have a positive impact on all of the above?
What is this factor you ask?
It’s simple really.
It probably won’t surprise you.
It’s cash flow.
The more positive cash flow you have, the more likely you are to active those eight things.
1. If you want to find out about people’s opinions on a product, google <product> reddit. You’ll get real people arguing, as compared to the SEO’d Google results.
2. Some banks charge you $20 a month for an account, others charge you 0. If you’re with one of the former, have a good explanation for what those $20 are buying.
3. Things you use for a significant fraction of your life (bed: 1/3rd, office-chair: 1/4th) are worth investing in.
5. If your work is done on a computer, get a second monitor. Less time navigating between windows means more time for thinking.
Call it out below. I’ll DM a few of you and arrange delivery.
Happy New Year!
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